Best Nanny Payroll Services
Two corrections worth stating up front, because they eliminate options families are often pointed toward. Gusto does not support household employer payroll at all — its own help center says so plainly and it refers families to its partner Poppins Payroll, which files W-2s and Schedule H. And Patriot's help center states that Patriot Full Service does not handle Schedule H for household employers. Both facts were verified August 18, 2026 on the vendors' own sites.
Household employment is its own compliance corner. When you pay a nanny, senior caregiver, or housekeeper above the annual threshold, you generally become a household employer with withholding, filing, and year-end W-2 obligations — and household employers typically report federal employment taxes on Schedule H filed with their own Form 1040, not as separate business payroll returns. Because the stakes here are a personal tax return rather than a company's books, this page stays conservative: where household handling isn't documented, we mark it as something to confirm rather than assume.
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The options I'm re-checking
We earn nothing from SurePayroll. We do earn a commission from OnPay and Patriot, and neither documents Schedule H support for households.
- On hold (October 2026)
SurePayroll
Families paying a nanny, caregiver, or housekeeper
SurePayroll is the only provider on this page with a plan built specifically for households, and the only one whose Schedule H handling is documented. Its Nanny & Household plan is $45/month including one employee, handles federal and state taxes, issues your caregiver's W-2, and produces a signature-ready Schedule H (verified August 2026).
One nuance to understand, because it is how household payroll actually works: SurePayroll prepares the Schedule H for you, but Schedule H is filed with your own Form 1040 — no provider files it separately on your behalf. What you're buying is a correct, signature-ready schedule to hand to whoever prepares your return.
That specificity is the entire argument. A household employer doesn't need benefits administration, org charts, or HR workflows — they need correct withholding, correct filings, a W-2 at year end, and a Schedule H they can sign.
Where it falls short- Reported missed payroll tax deposits for full-service clients (October 2026). See the warning in my SurePayroll review.
- Benefits and HR functionality are minimal, though most families don't need them.
- The interface is basic compared with mainstream business payroll platforms.
- The Nanny/Household plan is $45/month including one employee (pricing verified August 2026).
- Schedule H is prepared for you, not filed for you — it goes in with your personal return.
- State-level household requirements vary; confirm your own state's registration and filing details during setup.
- Household support unconfirmed
OnPay
Families who want one flat rate and are willing to confirm household support directly
OnPay is $49/month plus $6 per person with no tier ladder: unlimited pay runs, federal, state, and local tax filings, W-2 and 1099 filings, and multi-state payroll included. For a single household employee, that's about as simple as pricing gets.
The flat structure also means nothing changes if your situation gets slightly more complicated — a second caregiver, or a caregiver working across a state line. What we cannot tell you is how it treats household employment: OnPay does not list household or domestic employers among its industries, and we could not locate OnPay documentation on household-employer support or Schedule H either way (checked August 2026).
Where it falls short- Not a household-specific product.
- No cheaper single-employee tier: you pay the full base for one nanny.
- being verified: confirm OnPay's current household-employer support, including Schedule H handling, before signing up.
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- Cheapest payroll, but no Schedule H
Patriot Payroll
Cost-focused families whose tax preparer will handle Schedule H separately
Patriot's base price is among the lowest available for full-service payroll, and its Full Service plan files federal, state, and local payroll taxes with a tax filing accuracy guarantee. For a one-employee payroll, the monthly difference against the $49-base providers is real money over a year.
But there is a hard limit for households: Patriot's own help center states that Patriot Full Service does not handle the Schedule H for household employers (verified August 2026). Since Schedule H is the federal reporting path most household employers use, that gap has to be covered by your tax preparer — which is why Patriot ranks last here despite being cheapest.
Where it falls short- Patriot Full Service does not handle Schedule H for household employers.
- Basic Payroll is not full-service at all — you would be filing your own payroll taxes.
- No household-specific packaging or guidance.
- Basic Payroll is $17/month plus $4 per worker paid, but you handle the tax filings and deposits yourself; Full Service Payroll is $37/month plus $5 per worker paid (pricing verified August 2026).
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Compare the picks side by side
| Provider | Starting price | Per person | Best for |
|---|---|---|---|
| SurePayroll | $45/mo incl. 1 employee | $7 / worker / mo | On hold (October 2026) |
| OnPay | $49/mo base | $6 / person / mo | Families who want one flat rate and are willing to confirm household support directly |
| Patriot Payroll | Full Service: $37/mo base | $5 / worker paid / mo | Cost-focused families whose tax preparer will handle Schedule H separately |
Prices shown come from each provider's review page on this site. Confirm current pricing with the provider before signing up — payroll pricing changes often.
Pricing verified August 2026
How we picked
For household employers we weight compliance fit above everything else. The first question is whether the provider supports household payroll at all, and whether Schedule H is documented, because the household reporting path differs from ordinary business payroll returns.
That single test removed a popular option. Gusto's help center states verbatim that it does not support household employer payroll because the tax rules differ from those for regular employees or contractors, and Gusto refers families to its partner Poppins Payroll, which files W-2 and Schedule H. Patriot passes on price but its help center states Full Service does not handle Schedule H.
After compliance we weight total monthly cost for exactly one employee, whether full-service filings are included in the specific plan being sold, and how much guidance a first-time employer gets during setup. Platform breadth — benefits, HR, analytics — is worth almost nothing here. Where household handling isn't documented at all, we mark it as something to confirm rather than filling the gap with an assumption.
Every provider is scored against the same criteria. Read our payroll software review methodology.
Frequently asked questions
What is the best nanny payroll service?
I'm re-checking that answer. My former pick, SurePayroll, is on hold after reports of missed payroll tax deposits in October 2026. Gusto doesn't support household employer payroll and refers families to its partner Poppins Payroll, and Patriot Full Service doesn't handle Schedule H. Whichever provider you consider, confirm it supports household employers and Schedule H in your state.
Can I use Gusto for nanny payroll?
No. Gusto's help center states that it does not support household employer payroll because the tax rules differ from those for regular employees or contractors, and Gusto refers households to its partner Poppins Payroll, which files W-2 and Schedule H. Verified August 2026 on Gusto's own site.
Do I really have to run payroll for a nanny?
If you pay a household employee more than the annual threshold set by the IRS, you generally take on employer obligations including withholding, tax reporting, and issuing a W-2. Thresholds and state rules change, so confirm the current figures with the IRS or your own tax professional before deciding.
What is Schedule H?
Schedule H is the schedule household employers generally use to report federal household employment taxes, and it is filed with your own Form 1040 rather than as a separate business payroll return. A service that supports Schedule H prepares a signature-ready schedule for you to file with your personal return — it does not file it for you.
How much does nanny payroll cost?
SurePayroll's Nanny & Household plan is $45/month including one employee (pricing verified August 2026). General business payroll runs a base plus a per-person fee — OnPay is $49/month plus $6 per person, and Patriot Full Service is $37/month plus $5 per worker paid — but neither documents Schedule H support for households, and Patriot's help center says Full Service does not handle it. Confirm pricing directly, since it changes.
Can I just pay my nanny cash?
Paying cash without meeting your withholding, reporting, and W-2 obligations exposes you to back taxes, penalties, and interest, and it leaves your caregiver without documented earnings for Social Security, unemployment, or a mortgage application. Talk to a tax professional about your specific situation rather than treating it as a gray area.
Is the cheapest plan good enough for one household employee?
Only if it covers the household-specific filings. Patriot's Basic Payroll leaves all filings and deposits with you, and even Patriot Full Service does not handle Schedule H for household employers — so the savings come with a gap your tax preparer has to close.
The bottom line
I don't have a household payroll pick I'm comfortable with right now. SurePayroll is on hold after the October 2026 deposit reports, Gusto doesn't support household employers, Patriot Full Service doesn't handle Schedule H, and OnPay doesn't document household support either way. Before you sign up anywhere, confirm the provider supports household employers in your state and that your plan includes the filings you need, and run the setup past your own tax professional.
Read how we research and score payroll providers in our payroll software review methodology.